HARP Refinance Program Introduction

 

The Home Affordable Refinance Program (HARP) allows owners of underwater homes to refinance to today’s low interest rates. Refinancing is typically not possible for owners with little or negative equity. The key requirement for HARP eligibility is that the home loans must be owned by Fannie Mae or Freddie Mac. HARP allows homeowners facing difficulties refinancing their mortgage through conventional methods to apply for a refinance of their mortgage. A homeowner that is current with their monthly payments but unable to refinance due to a drop in the value is the typical prime candidate for the HARP program. The ultimate goal is to allow a homeowner to do a mortgage refinance for a lower interest rate and overall monthly payment.

 

 

HARP Refinance Program Qualification and Saving

 

Homeowners who are taking advantage of HARP Refinance program are savings about 35% of their monthly payment.

Comparing the Before-and-After payments of a typical HARP refinance Scenario

 

• Original mortgage from April 2007 : $400,000 at 6.50%; Payment of $2,528.

• HARP refinance of same mortgage today : $368,000 at 3.50%; Payment of $1,652.

​

Via HARP, the homeowner saves $875 monthly. That's a 35 percent payment reduction and the math works at all loan sizes and in all cities.

 

• The mortgage must have been taken out before May 31st 2009

• It must be owned by Fannie Mae or Freddie Mac

• Payments must be up to date

• The client must be employed